Elliott Investment Management plans to throw its weight around at PepsiCo (NASDAQ:PEP) after taking a sizable stake, according to The Wall Street Journal. The firm has encouraged PepsiCo (NASDAQ:PEP) to analyze both its beverage and food brands to see if sluggish brands need to be cut or offloaded. Elliott also wants the company to revamp its bottling network.
In general, Elliott Management expects PepsiCo (PEP) to undertake a sweeping turnaround plan aimed at restoring growth, improving margins, and increasing shareholder value after years of share price performance.
The global hedge fund was founded in 1977 by Paul Singer. Known for activist investing, the firm currently manages over $75 billion in assets and actively pursues value creation through investments in public and private markets, distressed debt, and corporate restructurings. Elliott is recognized for influencing management and driving change in underperforming companies worldwide, with a reputation for aggressive tactics and long-term, opportunistic strategies.
So far, PepsiCo (PEP) has played it cool about Elliott’s investment, saying it is reviewing the firm’s formal presentation in the context of driving long-term shareholder value. Elliott’s ~$4 billion position in PepsiCo (PEP), which is reportedly the hedge fund’s largest equity position ever, makes it one of PepsiCo’s (PEP) top five active investors,
Over the past year, PepsiCo (PEP) has acquired prebiotic soda brand Poppi and Siete Foods and has become even closer to Celsius Holdings (CELH), with enhanced distribution and strategic oversight for the Celsius, Rockstar, and Alani Nu energy brands.